Alcatel-Lucent (ALU) Cuts First-Quarter Losses by 80%

NEW YORK (TheStreet) -- Alcatel-Lucent's (ALU) turnaround plans are finally taking root after the company narrowed first-quarter losses 80% from a year earlier.

The French network equipment maker reported quarterly net losses of 75 million Euros, or 3 Euro cents a share. Losses were one-fifth what they were a year earlier as the company slashed its overheads and unloaded unprofitable parts of the business.

At the end of last year, Alcatel-Lucent earned its first quarterly profit since early 2012, proving the company is making headway with its restructuring plans.

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TheStreet Ratings team rates ALCATEL-LUCENT as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ALCATEL-LUCENT (ALU) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow."

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